CAIRO: The Egyptian Exchange (EGX) indexes rallied Thursday, getting support from strong purchases from Arab and foreign traders, amid upbeat investor sentiment about President Abdel Fatah al-Sisi’s speech on the occasion of the 62nd anniversary of the July 23, 1952 Revolution, and market capitalization added around 5.3 billion EGP ($741.1million.)
EGX was also buoyed by the market bellwether, Commercial International Bank – Egypt (CIB) which hit an all-time high, after consolidated financial statements released Wednesday showed a 30.8 percent increase in profits during the first half of 2014.
CIB profits jumped to 1.7 billion net profits, compared with nearly 1.3 EGP billion in the same period of last year.
The benchmark index EGX30 jumped 2.12 percent to hit 8,744 points, the highest daily increase within more than seven week, compared to 8,563 points Tuesday. The small and mid-cap index EGX70 added 0.56 percent to reach 619 points, and the broader index EGX100 also rose 0.63 percent, to reach 1,095 points.
Total trade value amounted to 628.2 million EGP.
Capital market expert, Abdel Rahman Taha told The Cairo Post that Sisi’s speech, which included some positive indicators for investors, supported the market rally.
“In his speech, Sisi spoke about the economy that promotes Egyptians and achieves their welfare. Sisi said Egypt is in no need to an economy which steals their freedom, meaning there is independence in political as well as economic decisions,” said Taha.
Sisi also addressed incomes and providing job opportunities for youth. This indicates to lower unemployment rates in the 1st quarter of the current fiscal year, Taha added.
“The president also talked about agriculture and road network, and seemed optimistic and satisfied, and this means that his sadness and concerns about Egypt’s future disappeared and that he started to reap the benefits of his economic thoughts with no worries,” said Taha.
“CIB managed to breach above its resistance level of 39.50 EGP; a confirmed breach above this level will lead to resumption of the bull trend in the medium-term, triggering a buy signal, leading it to 42.50 EGP as a first target and then 44.50 EGP as a second target,” head of the Technical Analysis Desk at Naeem Brokerage, Ibrahim El-Nemr, told The Cairo Post.
EGX announced on Thursday that it will officially be closed from July 28 -30 on the occasion of the Eid al-Fitr holiday. Trading is scheduled to resume Thursday, July 31.